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172 days

Fed's Preferred Inflation Measure Dropped To 7-Month Low In January

1. Inflation slowed to 2.5% PCE in January, meeting economist forecasts. 2. Core PCE inflation stands at 2.6%, lowest since June's figure. 3. Inflation remains above the Federal Reserve’s 2% target, expected to stay until 2027. 4. Consumers’ inflation expectations are the highest since November 2023. 5. Sticky inflation hints at less frequent interest rate cuts by the Fed.

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FAQ

Why Bearish?

Persistent inflation indicates the Fed may delay rate cuts. Past situations, like in 2018, showed similar inflation trapping markets.

How important is it?

The Fed's policies significantly influence the S&P 500, and persistent inflation shapes future rate decisions.

Why Long Term?

Inflation targets may not be achieved until 2027, affecting market confidence and valuations.

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